DDA recommends expanded boundary

Published 10:00 am, Thursday, July 14, 2011

The Midland Downtown Development Authority received mostly favorable comments on its plan to expand its boundaries north and east of the current district.

The plan calls for no additional millage or Shopping Area Redevelopment Act assessments at this time for the expansion region, which includes the Dow Diamond and an area roughly between Buttles and Grove streets from Jerome to State streets.

DDA Chairman Marty McGuire said the expansion positions the DDA for when future development will take place.

“It has really come to light that the character of the neighborhood has changed in recent years,” he said, with many homes in the residential area torn down in preparation for future development.

The expansion would include 142 real property parcels and 11 personal property parcels, with a total base taxable value of $5.4 million.

The district would be able to capture increases in taxable value as properties are developed or increase in value. That increase in taxes — but not the base amount — would be redirected to the DDA rather than going into the city’s general fund, to support DDA activities such as event planning and promotion.

The current DDA district has 189 real property parcels and 221 personal property parcels, with a base taxable value of $9.8 million and total taxable value of $26.3 million — meaning the $16.5 million above the base is available for the capture of tax revenue.

CB Richard Ellis/Martin, a management organization representing landowner Spheric Development, wrote in support of the DDA district expansion.

“Downtown Midland has great potential for growth in the near future and Spheric applauds the city’s efforts to proactively expand the DDA,” wrote Dan Sermak, senior real estate manager for CB Richard Ellis/Martin.

T.J. McCann, who owns property in the area, attended a public hearing about the proposed expansion on Wednesday. He liked the direction the DDA is heading and suggested the district be expanded even further to the southeast to include Haley and Fournie streets.

DDA members opted not to change the proposal, but noted the boundary could change again in the future if appropriate.

Another property owner, Linda Hepinstall, wrote with concerns that although no additional millages are proposed at this time, they could be added in the future.

“Once you enact this district, I feel it will be a slippery slop to the time of a millage,” she wrote in an e-mail to the city.

City Manager Jon Lynch said when property owners ask if their costs will go up, the honest answer would be, “No, not today. That question remains open ended. Those tools remain out there.”

It is unknown what specific development may occur in the expanded district, Lynch said

“I do think it’s valuable to be prepared to play that role should an opportunity arise,” he said. “I think it’s smart to be proactive and this is an opportunity to be proactive.”

The DDA recommended approval of the expanded boundary and the item now goes to the Midland City Council for public input and a vote on the issue.